Oral Answers to Questions

Debate between Robert Neill and Chris White

Monday 5th September 2011 Commons Chamber

[Chris White (Warwick and Leamington) (Con)]

4. What steps his Department is taking to increase the efficiency of local government expenditure.

[The Parliamentary Under-Secretary of State for Communities and Local Government (Robert Neill)]

The most important thing that the Government are doing is to return power to local authorities, because they are the people who are best placed to manage their resources in a way that meets local priorities, but specifically we are also supporting a raft of initiatives, such as the local government procurement programme.

[Chris White]

Recently, I met a local business, Colan Ltd, which was concerned about the way that local authorities procure goods and services. My constituent stated that local authorities have conflicting policies that are costing small companies such as his and in some cases are wasting public money. Will the Minister detail what work is being done to put in place more joined-up procurement across local authorities to support small businesses and ensure better use of public money?

[Robert Neill]

My hon. Friend makes a fair point. The estimate is that some 20% could be saved on the £50 billion that local authorities spend on third parties, which is about £452 per family a year. To that end, the Government are working with the Local Government Group on behalf of the sector to identify short and longer term savings through the local productivity programme.